My understanding is that the this year the penalty for Early IRA Withdrawal has been waived due to Covid.
In addition Ive already had 2 clients tell me that they were told that when they took out early distributions. Yet there is nothing on the 1099-R that indicates that and I cant find anything in the Exception section of Form 5329
Please refer t the 3,000 posts about this subject already on the board. The form you're looking for will be ready soon as well as the update to the software.
The penalty hasn't been waived due to COVID. You don't automatically receive a "get out of jail free card" regarding the 10% penalty. The waiving of the penalty only applies if you had a legit COVID reason to pull the money out.
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